SA Market Update – 19/01/2018

South Australian grain and oilseeds prices moved lower week on week with wheat, barley and canola bids all finishing below last week’s numbers. Despite the general easing in prices we have seen some very strong demand for F1 barley on the Adelaide track market with buyers willing to go above their publicly listed bid for reasonably sized parcels.

Wheat markets traded mostly sideways from the previous week with export demand providing the most support. Domestic markets were also subdued with end users happy to retain open demand throughout February. SFW1 markets were slightly firmer with delivered bids into Murray Bridge gaining $2-3/MT over the week.

Malt barley bids continue to reflect their varietal demand from domestic consumers with Scope, Commander and Latrobe barley bids holding firm week on week. In more recent weeks Westminster barley has shown significant interest from buyers with the Adelaide track bid moving $14/MT higher since the 5th of January.

Canola, on the other hand, continues to struggle and strain under the pressures of a large domestic crop, weaker offshore futures, and an ever-stronger Australian dollar. On Wednesday canola saw a $492/MT bid on the Adelaide track but faltered throughout Thursday and Friday’s session, falling $22/MT to finish at $470/MT. The low-price environment currently affecting South Australian canola markets doesn’t appear to be justifiable over the long term. Any weakness in our currency should see cash markets make significant improvements in veg oil trade volumes forecast to increase this season.